Gasoline stocks fell by 2.6 million barrels, much more than the 243,000-barrel drop expected by analysts in a Reuters poll. Profit margins for refiners on gasoline have declined in recent weeks after a winter where they overproduced the motor fuel, creating a supply glut.

The price of U.S. light sweet crude was steady around $48.70, up about 0.4 percent in late morning trade. Brent crude was just slightly lower.

Crude prices have recently breached $50 a barrel on hope that the glut was easing due to large outages worldwide from Canada, Nigeria and other countries. U.S. rig counts have increased in the last two weeks, however, raising concern that supplies may grow and pressure prices again.

“The renewed fall in domestic production removes some the bearish sentiment from the apparent return of some drilling activities in the lower-cost shale plays,” said John Kilduff, partner at New York energy hedge fund Again Capital.

“With refiners dialing back operations a bit, there may be more demand pressure on gasoline stocks in the weeks ahead. Prices should get some support from the report for a time.”